IT strategy and business performance : a study of industry and company size

Abstract

The objective of this study is to explain the linkages between the strategic use of Information Technology (IT) and business performance. Numerous IT related strategies are discussed and researched. However, the strategies have generally been treated individually and examined specific uses of IT in areas such as operations, knowledge management or global IT strategy. This research paper incorporates a wide range of these strategies into a unified framework to derive an integrated perspective of IT strategy. From this framework a survey instrument was developed and a web-based survey of upper level IT management was conducted. A total of 220 respondents completed the survey. In the overall model IT strategy was positively linked with business performance. Further analysis revealed variations in the linkages depending on industry and company size. Companies in service industries and companies with between 100 and 500 employees stood out as those with the highest correlations between IT strategies and business performance. Companies in the manufacturing industry and companies with over 500 employees had the lowest correlations.